what is Credit derivatives,equity derivatives,SWAPS?
Answer / prasanna11149@yahoo.co.in
Privately held negotiable bilateral contracts that allow
users to manage their exposure to credit risk. Credit
derivatives are financial assets like forward contracts,
swaps, and options for which the price is driven by the
credit risk of economic agents (private investors or
governments).
For example, a bank concerned that one of its customers may
not be able to repay a loan can protect itself against loss
by transferring the credit risk to another party while
keeping the loan on its books.
In finance, an equity derivative is a class of financial
instruments whose value is at least partly derived from one
or more underlying equity securities. Market participants
trade equity derivatives in order to transfer or transform
certain risks associated with the underlying security.
Options are by far the most common equity derivative
[citation needed], however there are many other types of
equity derivatives that are actively traded.
A contract in which two parties agree to exchange periodic
interest payments, especially when one payment is at a
fixed rate and the other varies according to the
performance of a reference rate, such as the prime rate.
Is This Answer Correct ? | 8 Yes | 3 No |
what do you mean by debt equity ratio?
17 Answers Arvind, Capital IQ, Raymond, Su Kam,
What is bad debt ? how does it effects on Balance sheet and profit and loss account?
Hi guys, Could anybod tell the what is journal entry when the internal order(rea) is settled?
how to calculate the Current Ratio, Liquid Ratio & Operating Ratio
can a real account shows a credit balance
What is wealth maximisation
What is the difference between income statement & Profit&loss A/c?
EXPAND_________VHF
what is a depository?
Accounting entry for credit sales and credit purchases
SIR, Tell me the which software useful for the accounting procees . what is difference is between the finacial accounting and mangemeting what are responsebilitys for a company .
Do you have reference list
1 Answers GSK GlaxoSmithKline,